Considering climate change in planning decisions

To help meet Victoria’s greenhouse gas emissions targets and increase resilience to climate change risks, the planning sector, like other sectors, has responsibilities to contribute to climate action.

Amendments have been made to the Planning and Environment Act 1987 (Act) to embed clear consideration of climate change in land use planning decisions.

Amendments to the Act

The amendments came into operation on 26 March 2025 and introduce a new:

• climate change objective of the planning framework
• requirement for planning authorities to consider climate change in decision making
• power enabling the Minister for Planning to issue a Ministerial Direction on climate change matters that planning authorities must consider.

Climate change objective

Section of the Act

s. 4(2)(da)

Objective

A new objective of the planning framework for climate policies and obligations, including consideration of greenhouse gas emissions reduction targets and increasing climate change resilience when making decisions about the use and development of land.

Consideration and power of planning authorities

Section of the Act

s. 12(2A)

Consideration

This section specifies emissions reduction targets and any significant risk that arises from or is likely to arise from the impact of climate change must be considered by a planning authority when preparing a:

• new planning scheme or
• planning scheme amendment.

It only affects certain planning scheme amendments undertaken by planning authorities. This will also apply when planning authorities update their planning scheme through five yearly reviews.

There is no direct impact on planning permit decision making.  A planning permit is not required to consider these climate change matters, unless the planning scheme provides for it.

Ministerial Direction No. 22 Climate change consideration

Section of the Act

s. 12A

Consideration

The Ministerial Direction to planning authorities sets out the scope of responses planning authorities apply to discharge their duty to consider climate change when preparing or amending their planning schemes.

Supporting guidance

Supporting guidance material has been prepared by the Department of Transport and Planning with the Department of Energy, Environment and Climate Action.

Planning authorities can also use existing climate change guidance materials and tools, such as Victoria’s Future Climate tool, to better understand climate risks.

Transitional provisions

Section of the Act

s. 230

Requirements

These apply if certain steps were taken immediately before 26 March 2025, including:

• The planning authority has given notice of the preparation of the amendment.
• The planning authority has applied to the Minister for an extension for the amendment.
• Any person has made a request for the preparation of or applied for an exemption for the amendment.
• The Minister has exercised a power of exemption or determined to prepare the amendment.
• The Minister has established an advisory committee on the amendment or referred an amendment to an advisory committee.

The types of amendments that apply

The climate change consideration applies to the preparation of a new planning scheme and planning scheme amendments.

The most relevant amendments will likely include those that rezone land from a non-urban zone to an urban zone, an amendment that enables a significant change or intensification of urban land, and use and development of land that may be exposed to natural hazards.

The consideration does not apply to an amendment that:

• is a class of amendment prescribed in accordance with Section 20A of the Act. For example, a corrections amendment.
• is exempted by the Minister for Planning under the Ministerial Direction from the climate change consideration.

The climate change matters to be considered

The Ministerial Direction outlines the matters to be considered including:

• minimising greenhouse gas emissions through:
  • urban layout and structure
  • precinct-scale planning for zero emissions vehicles
  • planning for energy efficiency and renewable energy.
• the impact of climate change on natural hazard risks, including:
  • bushfire
  • flood
  • coastal inundation and erosion
  • landslip and landslide
  • heatwave
  • drought.

Applying the climate change matters to different types of amendments

Different matters apply to different types of amendments and more than one matter may apply.

Reducing greenhouse gas emissions must be considered for new and intensified urban growth as well as land use change for urban purposes. Increasing resilience to climate change risks must be considered for new land use and development that may be exposed to natural hazards.

Existing climate change policy and strategy

The Victoria Planning Provisions (VPP) and planning schemes contain existing provisions which support:

• emissions reduction, including through reducing fossil gas use, enhancing energy efficiency, increasing use of active and public transport and facilitating renewable energy
• increasing resilience to climate change, including in relation to bushfire, flood, coastal inundation and erosion, landslip and landslide and additional impacts relating to heatwave and drought as highlighted through the Ministerial Direction.

The amendments to the Act complement existing planning requirements, emphasising these are not discretionary considerations, but mandatory. One of the VPP’s purposes is to support responses to climate change.

Considering other Ministerial directions

A planning authority must still have regard to other applicable Ministerial directions issued under section 12(1A) of the Act, even if those directions also require consideration of matters relating to climate change. For example: Ministerial Direction No.13 - Managing Coastal Hazards and the Coastal Impacts of Climate Change.

Other resources

More information can be found at Ministerial directions 22

Page last updated: 11/09/25